Portuguese Tax Residents: obligation to declare foreign bank accounts

Portuguese Tax Residents: obligation to declare foreign bank accounts

Although there is no obligation to submit a Personal Income Tax in case your only income is made of just pensions or salaries and is less than € 8,500 per year, there is still an obligation to declare bank accounts.

All persons who have foreign bank accounts must declare them in the IRS, this appears in Article 63.8º A of the General Tax Law “The taxable persons of the IRS are obliged to mention in the corresponding income statement the existence and identification of deposit accounts or of open securities in a financial institution not resident in Portuguese territory or in a branch located outside the Portuguese territory of a resident financial institution, of which they are holders, beneficiaries or who are authorized to handle ”.

Let’s explain what this article means:

This obligation is fulfilled in table 11 of Appendix J of the income tax declaration Model 3 of the IRS and consists of the mere identification of the accounts, having no impact on the tax payment. They are merely informative.
The law only refers to deposit or securities accounts, so accounts of a different nature, for example, payment accounts are not required to be declared.

Should digital bank Accounts also be declared in my Personal Income Tax Declaration?

With reference to accounts associated with digital banks the answer is note the same for all cases. For example, with the digital bank Revolut, the Tax Authority clarifies that it is not necessary to declare it. Why? Because in Portugal they already operate as a financial institution, for payment and not for credit. However, there are other accounts in digital banks, such as the case of N26, that must be declared, since these banks are considered by Banco de Portugal, “European Union credit institutions” once they assign customers a foreign IBAN. There are other banks, for example, ActivoBank which due the fact that is in Portugal, are exempt from this obligation.

How to declare a foreign bank account in the Income Tax Declaration?

To declare accounts opened abroad, they must be declared in Appendix J of the income statement, identified in Box 11. The identification of the account is done through:

  • IBAN (international bank account number)
  • BIC (bank identification code).

 

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